Form 1099-NEC is new for 2020 reporting. The form is used to report non-employee compensation, formerly Box 7 on Form 1099-MISC. The IRS reinstituted this form since Form 1099-MISC had separate due dates for filing with the IRS based on the types of payments. Non-employee compensation payments needed to be mailed and filed by January 31st. Other types of payments, Rent, Royalties, etc. had a filing deadline of March 31st, February 28th if filing on paper. The varying due dates for one form caused unintentional late filings and penalties with the IRS.
Box 1 – Non-employee compensation and/or nonqualified deferred compensation (NQDC)
Box 2 – Reserved
Box 3 – Reserved
Box 4 – Backup withholding. A payer must backup withhold on some payments if the vendor did not provide a TIN number to payee.
For more information, the 1099-NEC instructions can be found here, https://www.irs.gov/pub/irs-pdf/i1099msc.pdf